Shareholders in Capital Hotels PLC, owners of Abuja Continental Hotel, on Wednesday applauded the management of the hotel for the massive investment to upgrade and give it a facelift to befit a reputable internationally acclaimed hospitality facility.
The shareholders spoke during the 2024 Annual General Meeting held in Abuja where the annual financial report and accounts for the year ended December 31, 2024 were presented.
Adebayo Williams who spoke first during the meeting said he, like most other shareholders, were very happy over the excellent performance by the management of the hotel during the year, especially with the huge injection of capital into refurbishing and upgrading facilities to bring them to international standard.
Williams, who is the President of Greenwich Shareholders Association, said with its reputation as one of the five-star hotels in Abuja, the investment by its management would attract more patronage and make the place more profitable in the years to come.
He said although earnings from the hotel’s operations dropped from six percent last year to about five percent, the shareholders were confident that when the hotel begins full operations after the rehabilitation exercise, its profit would increase by more than 100 percent, translating into more dividend to be paid to shareholders.
For the President of Dedicated Shareholders Association, Adeleke Oladimeji, who said the management of the hotel has, within a short period it took over, made the place better than it met it, said that showed success, which he observed, would translate into huge revenue from its operations.
Giving kudos to the management for its efforts, Olademeji said much was still being expected from them, to bring the hotel to a leadership position in the hospitality industry in the country.
“I say kudos to the management of the hotel for its dedication, seriousness and prudence in the management of men and resources. But we still need more from the Board of the hotel,” he said.
In his speech, the National Coordinator, Noble Shareholders Association, Abuja Branch, Chief Nwokocha Peters, also expressed satisfaction over the performance of the management, adding that within a short time, a lot of things have happened to give the shareholders hope for a better tomorrow.
“I am confident we have a roadmap the management is following. There is no doubt that its efforts are already yielding fruits, because they are doing the right things people want to see. What we want to see is for the management to continue to work as a team at all times to bring the result,” he said.
Prince Adewale who described the report as historical, said he was satisfied with the way the management of the hotel was working to turn things around, pointing out that although the shareholders were not expecting to receive payments for dividend this year, they were hopeful that it would happen soon.
Adewale asked for more women representation on the Board of the hotel to meet the requirements from the regulatory authorities.
He asked the management to consider raising the hotel’s capital base to boost the resources at its disposal to continue its good works and services.
Earlier in his statement, the Chairman of the Board, Ramash Kansagra, who was represented by a non-Executive Director of the company, Alhaji Aminu Abdulkadir, said the 2024 business environment was characterized by economic reforms, currency devaluation and fluctuation inflation rates, all of which had significant impacts on various sectors of the economy, including the hospitality industry.
He said the removal of fuel subsidies and the devaluation of the Naira were central to the reforms initiated by the government to stabilize the economy and attract investments.
Despite the impact of the operating environment, the Chairman said the company delivered a strong performance during the year, reflecting a significant growth in key financial indicators, compared to the previous year.
Apart from recording a remarkable 128 percent increase in revenue, from N7.89 billion in 2023, to N17.98 billion in 2024, he said the substantial growth demonstrated a strong recovery and increased market share demand for the company services, driven by improved occupancy rates, higher room rates and enhanced customer offers.
“The hotel’s extensive renovation is still underway, featuring several ambitious projects already yielding impressive results. One of the standout achievements is the complete revitalization of the Ladi Kwali Centre, transformed into a stunning venue that beautifully showcases its cultural heritage, while incorporating modern amenities,” he said.
On the payment of dividend, the chairman said that though the company recognized the significance of dividends to investors, the Board was unable to recommend any for distribution to shareholders this year due to the current economic conditions and the company’s development status.
The Managing Director/Chief Executive of the hotel, Ravi Bachu, said the ultimate goal of his management in carrying out the refurbishing of the various facilities at the hotel was to provide a luxurious and sophisticated environment that meets the diverse needs of guests, while working towards restoring the hotel’s profitability and enhancing its reputation in the hospitality industry.
